Updated: Feb 19, 2020
Hi, John Macalyk here, 2020 is here and the new Decade has started and as you know the Financial year goes from July to June, some of us even enjoy “Christmas in July” ,
but other bills are compiled during the Calendar Year, one of those is LAND TAX.
Look on the bright side, if we pay Land Tax then we must have multiple properties, receiving rental Income, negatively geared, paying down investment mortgages, and paying less personal tax.
If you were the new owner of a property (ON TITLE) at Midnight on the 31st DECEMBER 2019- welcome to the Club.
The other good news is that your principal place of residence (owner occupied home ) and primary production land are exempt.
Like all taxes there are lots of rules and regulations regarding specialised entities such as TRUSTS, BOARDING HOUSES, LOW COST ACCOMODATION,
FOREIGN OWNERSHIP & Self Managed Super Funds, To name a few.
In NSW, Land Tax is Payable on Unimproved Land, valued more than $734,000
The Valuer General Values the land as at 1/7/2019, basically 6 months before Revenue NSW use that Valuation to calculate Land Tax and gives you the bill in January/February 2020.
Say your land value, not including the improvements, was valued at $800,000 you would pay $100.00 plus 1.6 % on the excess over $734,000.
Eg. $800,000 less $734,000 = $66.000 x 1.6 % = Your land tax bill would be $1,056.00 plus $100.00... $1,156.00 That’s not so much is it ?
UNLESS your one of those Mega Multiple property owners, then if the land value of those properties was more $4,448.000 Yes 4 Million four hundred and forty eight dollars.
Your Bill would be $56, 724.00 Plus 2 % of the excess over $4,448,000
Heard the phrase Asset rich- Cash poor? It's imperative to understand all the costs associated with investment property ownership. If you have any questions, and/or need to consolidate your debts into your home loan (and pay home loan rate), please call myself or one of our team. We are happy to assist.
Ciao for now.
AAA Managing Director
T: 02 92991144